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How Do I Apply For an eCommerce Business License?

By February 1, 2021February 17th, 2021No Comments

Why Is Business License So Needed?

The formula is very simple when it comes to businesses: as a business owner, you take the responsibility to offer high-quality products or services to customers that are waiting for a solution to their everyday problems. So you find a problem, create or source a product, and start selling it to buyers. This system is practically the same for both eCommerce and brick and mortar businesses. However, you need to gain trust!

Trust Is Not Just Words!

This is the reason there’s such a thing as a business license. In order to operate a legal, trustworthy, and high-quality business, you need to have proof in the form of a business license. Licenses are not only very important but are also widely used by the government for monitoring businesses. What’s more, licenses show that you have the approval to operate a business in a certain state or a country on a high, government level!

The main role of a business license is to provide the government with an opportunity to keep track of both businesses and their tax revenues. Licenses will help you grow your business without having problems with the government. Apart from that, operating your business without licenses may result in heavy fines, if a business license is obligatory in the area you operate your business, of course!

When Will I Need a Business License?

This question doesn’t have a specific answer, because you know, states and their different law systems… In certain places, you can operate your business without getting a business license until you attain a specific revenue threshold. However, some areas strictly require a business license before selling or offering a product!

How to Check?

As we said, everything is relative when it comes to taxes, business formation, and documents that are required in one state and are useless in another! However, if you want to check whether your region requires having a business license or not, you should definitely visit SBA’s (U.S. Small Business Administration) website. According to SBA, “Most small businesses need a combination of licenses and permits from both federal and state agencies. The requirements — and fees — vary based on your business activities, location, and government rules.”

Federal Licenses and Permits

As SBA says, you will need to get a federal license or permit if your business activities are regulated by a federal agency. So, if your business activity matches the activities that SBA has listed, you will have to get Federal Licenses and Permits. For example, if your business activities belong to the section fish and wildlife, you will have to reach the U.S. Fish and Wildlife Service. In other words, if you need a business license, you just go to the issuing agency and file an application!

State Licenses and Permits

The licenses and permits that you need from the state, county, or city strictly depend on your business activities and of course, your location. Well, not yours, we’re talking about the business location! If you’re thinking about the price of the licenses, you should also know that business license fees will also vary. What can we say, there’s nothing stable when it comes to businesses!

Requirements for Your Business License

  • Business entity: under which business entity you plan to operate your business? Is it a corporation, Sole Proprietorship or LLC?
  • Business Activities: As we said, everything highly depends on the activities that your business will have or already has.
  • Sales Taxes License: the issuer is your state agency. Simply apply for it!
  • Other documents like inspections and other permits.

Example

To better understand licenses and their nature, let’s observe the following example:

While drinking her favorite wine, she decided to open up a business of a devilish fine wine…However, to attain this goal, she needed to come down to earth and start the process of forming a business! She picked her business entity, chose her business name, registered her business, did all the paperwork, and finally applied for a license!

To sell wine (which is alcohol), she had to obtain a liquor license. This license would give her the freedom (and of course the right) to sell alcohol, in compliance with the local rules and regulations. There are different types of liquor licenses, for example, tavern liquor license, restaurant liquor license, server license, and of course, beer and wine liquor license. Guess which one she needed the most? Right! What is wine without a beer and wine liquor license, huh?

This is how you start your business without having problems with the government. There are certain product categories that are of high importance, which means that they should be carefully monitored in order to avoid unnecessary consequences.

Conclusion

In other words, you certainly need a business license to operate a good and profitable business. Even if the area your business operates in doesn’t require a business license until a specific threshold, you will only benefit from that! First of all, having a business license, or let’s say, kind of approval from the government, makes you more legit and authentic in your customers’ eyes! Apart from this, there are other benefits that are related to taxes, your personal assets, and so forth. If you have questions about business licenses, their importance, or the application process contact us, and we will give the answers you were waiting for!

If you created a business, the activities of which require having a business license, just know that we are there for you! If you’re not sure about your abilities in this very field, you can always pass this case to professionals working at Jerome Basilio! We not only offer investment opportunities, but also are obsessed with processes like inventory management, supplier acquisition, and other boring procedures that no one likes! Just call us whenever you feel you need help from professionals, and everything will be done in an extremely short period of time. Working with us will only prove that sometimes high speed leads to high quality!

Guest Writer

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